Non-Resident Investment in Government Securities through SRVAs
Investment in Government Securities by Persons Resident Outside India through Special Rupee Vostro Accounts (SRVAs)
Attention of Authorised Dealer (AD) Category–I banks is invited to Schedule 1 of the Foreign Exchange Management (Debt Instruments) Regulations, 2019 [Notification No. FEMA 396/2019-RB dated October 17, 2019], the Foreign Exchange Management (Deposit) Regulations, 2016 [Notification No. FEMA 5(R)/2016-RB dated April 1, 2016], as amended from time to time, and the relevant Directions issued thereunder. Reference is also invited to the Master Direction – Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025 dated January 7, 2025 (“Master Direction”).
- Persons resident outside India maintaining a Special Rupee Vostro Account (SRVA) for international trade settlement in Indian Rupees in terms of A.P. (DIR Series) Circular No. 10 dated July 11, 2022, are permitted to invest their surplus rupee balances in Central Government securities, including Treasury Bills.
- Necessary operational instructions in this regard have been incorporated in the Master Direction, which is being updated and issued herewith.
- These directions are effective immediately.
- AD Category–I banks are advised to bring the contents of this circular to the notice of their constituents and concerned customers.
- This circular is issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to any permission/approval required under other applicable laws.
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